Dollar loses ground as unemployment rate continues worrying trend
Australia’s unemployment rate stayed at 4.9 per cent in April, official figures from the Australian Bureau of Statistics (ABS) show today.
The ABS reported the number of people employed decreased by 22,100 people to 11,436,500 in
April. This was due to a slump in full-time employment, which was down 49,100 people to 8,056,800.
Such decline, however, was partially offset by an increase in part-time employment, up 26,900 people to 3,379,700.
The number of people unemployed decreased by 9,800 people to 583,000 in April, reported the ABS.
The ABS monthly aggregate hours worked series showed a decrease in April, down 14.7 million hours to 1601.6 million hours.
The bureau reported labour force participation in April of 65.6 per cent, a decrease of 0.2 percentage points from March.
HSBC chief economist Paul Bloxham said the unemployment rate was clearly continuing on its downward course - adding to the Reserve Bank's concerns over inflation.
"We stand by our sense that the Reserve Bank of Australia is ready to move (the cash rate higher), but we don't think that it's going to happen this month - we still think July or August are more likely," he said.
The release of the figures had an immediate impact on the Australian dollar, which lost almost one cent.
The local currency fell to 106.10 US cents immediately after the data was released at 11.30am. It was trading at 106.94 US cents minutes before the data was out after closing at 108.53 US cents yesterday.
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